Rep. Mary E. Flowers

Filed: 3/8/2013





09800HB0011ham001LRB098 00182 CEL 42429 a


2    AMENDMENT NO. ______. Amend House Bill 11 as follows:
3on page 3, by replacing line 14 with the following:
4"changing Section 15-1508 and by adding Section 9-107.11 as
5follows:"; and
6on page 4, by replacing line 2 through line 24 with the
8    "(735 ILCS 5/15-1508)  (from Ch. 110, par. 15-1508)
9    Sec. 15-1508. Report of Sale and Confirmation of Sale.
10    (a) Report. The person conducting the sale shall promptly
11make a report to the court, which report shall include a copy
12of all receipts and, if any, certificate of sale.
13    (b) Hearing. Upon motion and notice in accordance with
14court rules applicable to motions generally, which motion shall
15not be made prior to sale, the court shall conduct a hearing to



09800HB0011ham001- 2 -LRB098 00182 CEL 42429 a

1confirm the sale. Unless the court finds that (i) a notice
2required in accordance with subsection (c) of Section 15-1507
3was not given, (ii) the terms of sale were unconscionable,
4(iii) the sale was conducted fraudulently, or (iv) justice was
5otherwise not done, the court shall then enter an order
6confirming the sale. The confirmation order shall include a
7name, address, and telephone number of the holder of the
8certificate of sale or deed issued pursuant to that certificate
9or, if no certificate or deed was issued, the purchaser, whom a
10municipality or county may contact with concerns about the real
11estate. The confirmation order may also:
12        (1) approve the mortgagee's fees and costs arising
13    between the entry of the judgment of foreclosure and the
14    confirmation hearing, those costs and fees to be allowable
15    to the same extent as provided in the note and mortgage and
16    in Section 15-1504;
17        (2) provide for a personal judgment against any party
18    for a deficiency; and
19        (3) determine the priority of the judgments of parties
20    who deferred proving the priority pursuant to subsection
21    (h) of Section 15-1506, but the court shall not defer
22    confirming the sale pending the determination of such
23    priority.
24    (b-5) Notice with respect to residential real estate. With
25respect to residential real estate, the notice required under
26subsection (b) of this Section shall be sent to the mortgagor



09800HB0011ham001- 3 -LRB098 00182 CEL 42429 a

1even if the mortgagor has previously been held in default. In
2the event the mortgagor has filed an appearance, the notice
3shall be sent to the address indicated on the appearance. In
4all other cases, the notice shall be sent to the mortgagor at
5the common address of the foreclosed property. The notice shall
6be sent by first class mail. Unless the right to possession has
7been previously terminated by the court, the notice shall
8include the following language in 12-point boldface
9capitalized type:
14    (b-10) Notice of confirmation order sent to municipality or
15county. A copy of the confirmation order required under
16subsection (b) shall be sent to the municipality in which the
17foreclosed property is located, or to the county within the
18boundary of which the foreclosed property is located if the
19foreclosed property is located in an unincorporated territory.
20A municipality or county must clearly publish on its website a
21single address to which such notice shall be sent. If a
22municipality or county does not maintain a website, then the
23municipality or county must publicly post in its main office a
24single address to which such notice shall be sent. In the event
25that a municipality or county has not complied with the
26publication requirement in this subsection (b-10), then such



09800HB0011ham001- 4 -LRB098 00182 CEL 42429 a

1notice to the municipality or county shall be provided pursuant
2to Section 2-211 of the Code of Civil Procedure.
3    (c) Failure to Give Notice. If any sale is held without
4compliance with subsection (c) of Section 15-1507 of this
5Article, any party entitled to the notice provided for in
6paragraph (3) of that subsection (c) who was not so notified
7may, by motion supported by affidavit made prior to
8confirmation of such sale, ask the court which entered the
9judgment to set aside the sale. Any such party shall guarantee
10or secure by bond a bid equal to the successful bid at the
11prior sale, unless the party seeking to set aside the sale is
12the mortgagor, the real estate sold at the sale is residential
13real estate, and the mortgagor occupies the residential real
14estate at the time the motion is filed. In that event, no
15guarantee or bond shall be required of the mortgagor. Any
16subsequent sale is subject to the same notice requirement as
17the original sale.
18    (d) Validity of Sale. Except as provided in subsection (c)
19of Section 15-1508, no sale under this Article shall be held
20invalid or be set aside because of any defect in the notice
21thereof or in the publication of the same, or in the
22proceedings of the officer conducting the sale, except upon
23good cause shown in a hearing pursuant to subsection (b) of
24Section 15-1508. At any time after a sale has occurred, any
25party entitled to notice under paragraph (3) of subsection (c)
26of Section 15-1507 may recover from the mortgagee any damages



09800HB0011ham001- 5 -LRB098 00182 CEL 42429 a

1caused by the mortgagee's failure to comply with such paragraph
2(3). Any party who recovers damages in a judicial proceeding
3brought under this subsection may also recover from the
4mortgagee the reasonable expenses of litigation, including
5reasonable attorney's fees.
6    (d-5) Making Home Affordable Program. The court that
7entered the judgment shall set aside a sale held pursuant to
8Section 15-1507, upon motion of the mortgagor at any time prior
9to the confirmation of the sale, if the mortgagor proves by a
10preponderance of the evidence that (i) the mortgagor has
11applied for assistance under the Making Home Affordable Program
12established by the United States Department of the Treasury
13pursuant to the Emergency Economic Stabilization Act of 2008,
14as amended by the American Recovery and Reinvestment Act of
152009, and (ii) the mortgaged real estate was sold in material
16violation of the program's requirements for proceeding to a
17judicial sale. The provisions of this subsection (d-5), except
18for this sentence, shall become inoperative on January 1, 2014
19for all actions filed under this Article after December 31,
202013, in which the mortgagor did not apply for assistance under
21the Making Home Affordable Program on or before December 31,
23    (d-10) Illinois Hardest Hit Program. The court that entered
24the judgment shall set aside a sale held pursuant to Section
2515-1507 of this Act, upon motion of the mortgagor at any time
26prior to the confirmation of the sale, if the mortgagor proves



09800HB0011ham001- 6 -LRB098 00182 CEL 42429 a

1by a preponderance of the evidence that (i) the mortgagor is
2receiving assistance under the Illinois Hardest Hit Program as
3created by 12 U.S.C. 5211 and 12 U.S.C. 5219, and administered
4by the Illinois Housing Development Authority pursuant to the
5Illinois Housing Development Act and (ii) the assistance
6received under part (i) of this subsection has enabled the
7mortgagor to reinstate the mortgage pursuant to Section 15-1602
8of this Act and make continuing mortgage payments as available
9under the Illinois Hardest Hit Program to avoid default.
10Nothing in this subsection shall prohibit the mortgagee from
11proceeding in the foreclosure action upon a subsequent default
12of the mortgagor. Except for this sentence, this subsection is
13inoperative on and after January 1, 2017 for all actions filed
14under this Article after December 31, 2016 in which the
15mortgagor did not begin receiving the assistance described in
16this subsection under the Illinois Hardest Hit Program on or
17before December 31, 2016.
18    (e) Deficiency Judgment. In any order confirming a sale
19pursuant to the judgment of foreclosure, the court shall also
20enter a personal judgment for deficiency against any party (i)
21if otherwise authorized and (ii) to the extent requested in the
22complaint and proven upon presentation of the report of sale in
23accordance with Section 15-1508. Except as otherwise provided
24in this Article, a judgment may be entered for any balance of
25money that may be found due to the plaintiff, over and above
26the proceeds of the sale or sales, and enforcement may be had



09800HB0011ham001- 7 -LRB098 00182 CEL 42429 a

1for the collection of such balance, the same as when the
2judgment is solely for the payment of money. Such judgment may
3be entered, or enforcement had, only in cases where personal
4service has been had upon the persons personally liable for the
5mortgage indebtedness, unless they have entered their
6appearance in the foreclosure action.
7    (f) Satisfaction. Upon confirmation of the sale, the
8judgment stands satisfied to the extent of the sale price less
9expenses and costs. If the order confirming the sale includes a
10deficiency judgment, the judgment shall become a lien in the
11manner of any other judgment for the payment of money.
12    (g) The order confirming the sale shall include,
13notwithstanding any previous orders awarding possession during
14the pendency of the foreclosure, an award to the purchaser of
15possession of the mortgaged real estate, as of the date 30 days
16after the entry of the order, against the parties to the
17foreclosure whose interests have been terminated.
18    An order of possession authorizing the removal of a person
19from possession of the mortgaged real estate shall be entered
20and enforced only against those persons personally named as
21individuals in the complaint or the petition under subsection
22(h) of Section 15-1701 and in the order of possession and shall
23not be entered and enforced against any person who is only
24generically described as an unknown owner or nonrecord claimant
25or by another generic designation in the complaint.
26    Notwithstanding the preceding paragraph, the failure to



09800HB0011ham001- 8 -LRB098 00182 CEL 42429 a

1personally name, include, or seek an award of possession of the
2mortgaged real estate against a person in the confirmation
3order shall not abrogate any right that the purchaser may have
4to possession of the mortgaged real estate and to maintain a
5proceeding against that person for possession under Article 9
6of this Code or subsection (h) of Section 15-1701; and
7possession against a person who (1) has not been personally
8named as a party to the foreclosure and (2) has not been
9provided an opportunity to be heard in the foreclosure
10proceeding may be sought only by maintaining a proceeding under
11Article 9 of this Code or subsection (h) of Section 15-1701.
12    (h) With respect to mortgaged real estate containing 5 or
13more dwelling units, the order confirming the sale shall also
14provide that (i) the mortgagor shall transfer to the purchaser
15the security deposits, if any, that the mortgagor received to
16secure payment of rent or to compensate for damage to the
17mortgaged real estate from any current occupant of a dwelling
18unit of the mortgaged real estate, as well as any statutory
19interest that has not been paid to the occupant, and (ii) the
20mortgagor shall provide an accounting of the security deposits
21that are transferred, including the name and address of each
22occupant for whom the mortgagor holds the deposit and the
23amount of the deposit and any statutory interest.
24(Source: P.A. 96-265, eff. 8-11-09; 96-856, eff. 3-1-10;
2596-1245, eff. 7-23-10; 97-333, eff. 8-12-11; 97-575, eff.
268-26-11; 97-1159, eff. 1-29-13.)".